For the first half of 2015, Garmin Ltd. (NASDAQ: GRMN) has taken a beating, and it does not look like it is going to get any better. The company released preliminary results for its second quarter, and investors are not receiving this well. However, on the bright side the company expects things to pick up in the second half of 2015.

The company expects to report second-quarter earnings per share (EPS) in the range of $0.70 to $0.72 and revenue in the range of $770 to $775 million. The consensus estimates from Thomson Reuters call for $0.91 in EPS on $773.11 million in revenue. The company also expects a gross margin of 54%.

It is worth noting that Garmin’s actual results and full year 2015 guidance may differ materially from these preliminary results.

In terms of the full year, Garmin expects pro forma EPS of $2.65, compared to the prior guidance of $3.10 per share, and for revenue to be roughly $2.9 billion (unchanged). There are consensus estimates of $3.06 in EPS and $2.87 billion in revenue.

Garmin also mentioned that foreign-exchange movements decreased quarterly revenue by $55 million to $60 million, while a more promotional environment weighed on its fitness segment sales.

The reduced revenue growth in the quarter, along with promotional pricing, increased advertising investment and the unfavorable currency movements, had an impact on the operating margin in the fitness segment, which is expected to be approximately 21%. The company expects this to pick up in the second half of 2015.

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Cliff Pemble, president and CEO of Garmin, said:

Revenue performance was in line with our expectations in light of the difficult currency environment caused by a stronger US dollar. However, ongoing weakness of the Euro coupled with a stronger Taiwan Dollar has created further gross margin pressure. Additionally, the current competitive environment in the fitness market necessitates more aggressive pricing with higher advertising expenses. We are revising our full year outlook to reflect the dynamics we face in the current operating environment.

The company will report its actual second-quarter financial results on July 29.

Shares of Garmin were down 10% at $41.75 Thursday morning. The stock has a consensus analyst price target of $51.18 and a 52-week trading range of $41.19 to $61.75.

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